David Arsen

The Effects of Charter School Competition on School District Resource Allocation

Purpose: This article examines two questions: (a) How does resource allocation change in school districts experiencing sustained charter school competition? (b) Among districts exposed to charter competition, are there differences in the resource allocation adjustments between those that do and do not succeed in stemming further enrollment loss to charters? Research Design: The authors utilize fixed effect models to analyze a statewide panel data set of Michigan school districts from 1994 to 2006. The authors consider several dimensions of resource allocation—for example, average class size, teacher salaries, and spending shares devoted to a variety of disaggregated instructional and noninstructional functions, including administration. Findings: Overall, the results do not support the hypothesis that competition from charter schools spurs regular public schools to shift resources to achievement-oriented activities. Charter competition has had remarkably little impact on standard measures of district resource use in Michigan schools. On the other hand, higher levels of charter competition clearly generate fiscal stress in districts. Moreover, changes in resource allocation cannot explain the differing trajectories of districts that do and do not turn back the competitive challenge. There are no significant differences in the resource allocation changes made by districts that stabilize enrollment loss to charters and those that continue to spiral down. Conclusions: The authors find no support for the hopeful prediction that competition from charter schools will compel school district leaders to shift resources to achievement-oriented activities.

Taj Mahals of Decaying Shacks: Patterns in Local School Capital Stock and Unmet Capital Need.

Despite growing interest in the condition of school facilities as a dimension of school finance adequacy, reliable measures of capital stock for large samples of schools are hard to come by. In this article, we offer new methods for (a) measuring the existing capital stock of public schools, (b) defining adequacy in school facilities, and (c) measuring the cost of bringing existing school facilities up to an adequate standard. We apply our procedures to all school districts in Michigan, one of the few states that offers no state aid to local districts for the construction of capital facilities. Our estimates indicate large variations in school buildings and facilities across local communities that are highly correlated with local property wealth. Because we use publicly available data that are recently available for school districts nationwide, these methods can be readily replicated for other states.

Seeking Accountability through State-Appointed Emergency District Management.

Michigan’s Local Government and School District Accountability Act of 2011 empowers the governor to appoint emergency managers (EMs) in financially troubled school districts. EMs assume all powers of the superintendent and school board. They can reshape academic programs, nullify labor contracts, and open and close schools. This article analyzes the law’s political origins and early implementation. Relative to prevailing accountability mechanisms applicable to all school districts, in what respects are EM districts more accountable, and in what respects are they less accountable? Our analysis reveals that although the law concentrates control over school operations, it weakens most standard dimensions of district accountability.